The International Monetary Fund (IMF) has approved a staff-level agreement with Pakistan, unlocking a $1.2 billion disbursement aimed at supporting the country’s economic reform agenda. This agreement, announced on March 28, 2026, is contingent upon approval by the IMF Executive Board.
The disbursement is part of the third review of Pakistan’s 37-month Extended Fund Facility (EFF) and the second review of the 28-month Resilience and Sustainability Facility (RSF). Upon approval, Pakistan will gain access to approximately $1.0 billion under the EFF and $210 million under the RSF, bringing total disbursements to around $4.5 billion.
According to the IMF, the EFF has helped strengthen Pakistan’s economy, boosting market confidence. Economic activity has gained momentum, with inflation and the current account remaining stable. However, the Middle East conflict poses risks, including volatile energy prices and tighter global financial conditions.
Pakistani authorities and the IMF have exchanged drafts of the Memorandum of Economic and Financial Policies, finalizing key outlines of the 2026–27 budget. The IMF has emphasized a fiscal framework centered on a tax collection target of Rs15.08 trillion for the next fiscal year and more frequent adjustments in petroleum prices.
The IMF’s policy priorities for Pakistan include maintaining a prudent fiscal stance, broadening the tax base, and enhancing social protection spending. The State Bank of Pakistan is advised to maintain a tight monetary policy and be ready to adjust interest rates in response to global price changes.
The IMF also highlights the need for timely energy tariff adjustments and structural reforms to reduce circular debt and improve energy distribution. The Benazir Income Support Programme will be strengthened to protect vulnerable households from price volatility.
With broader reform goals, including anti-corruption efforts and climate resilience measures, the IMF’s support is crucial for Pakistan’s economic stability.
Published in SouthAsianDesk, March 28, 2026
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